A California refinance decision dumping an adjustable rate loan in favor of a fixed rate loan, goes from a maybe to a must. The popular California refinance choice made by many, the Option ARM, continues to rise.

As you may know, the COFI (pronounced “coffee”) Index refers to the 11th District Cost Of Funds and it is the index of choice for those adjustable rate loans that adjust monthly and quarterly, the same loan most used for a California refinance.

Your mortgage credit score is the most influential determinant of loan approval. Credit score calculators for each bureau spit out a number or score between 300 and 850 derived by analyzing your past payment history with an eye to your present-day lending risk.

Each of the three repositories has it’s own calculation and therefore we get an Equifax credit score, an Experian credit score, and a Transunion credit score. The mortgage credit score calculated by each agency are highly accurate as a predictor of credit risk.

You can get a home equity mortgage loan from almost any banking or mortgage institution. A broker, your local bank, big nationwide banks, credit unions, or investment firms like Etrade and others all sell home equity mortgages.

But which is the best one to use for a home equity mortgage loan?

This is the only time I would say not to use a mortgage broker or a smaller mortgage company and here’s why. A home equity second mortgage is not a broker’s forte. They want to make a certain amount on a loan and they get paid as a percentage of the loan amount.

If you are needing to save your home, our “short sale foreclosure” method could be the ticket. If you are in an area where dropping home values are prevalent, then definitely keep reading about our short sale foreclosure way to save your home.

Here’s how it works to save your home from foreclosure…

There are dangerous differences between a HELOC mortgage and a traditional home equity loan. Ignorance of HELOC mortgage differences in home equity loans can cause real trouble.

So, let’s get started unraveling those dangers….

A HELOC mortgage is a line of credit securitized by the equity in your house and sits usually in second lien position. A Fixed Home Equity Loan is not a “line of credit”, but a standard fixed term, fixed rate, fixed payment loan that also sits in second lien position.

The 40 year mortgage is sold to folks who want or need a lower payment. Many home owners are seeking a monthly payment even lower those provided on standard 30 year fixed loans. A 40 year mortgage is less in monthly payment because the loan is amortized over 40 years instead of 30…at least in theory!

Well, you know what I’m going to say….if you can’t afford to buy or refinance because you can’t even afford the 30 year payment, then you should not own a house.

In a divorce, mortgage lates can cause long lasting catastrophic problems for your credit. You can’t ever rely on verbal agreements during a divorce when it comes to your home. I can’t stress that enough. You may think as long as you are out of the home you are not responsible for the mortgage payment…but that is a mistake.

It doesn’t matter if you move out of your home, it’s still your responsibility to pay the mortgage. Couples who own property need to learn how to divorce properly.